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- 🥜 Is this the end?
🥜 Is this the end?
PLUS: Mt. Gox begins selling
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GM to all you crypto nuts. Crypto Nutshell #376 bracin’ ourselves.. 🫣 🥜
We’re the crypto newsletter that’s more adventurous than joining the Fellowship on a quest to destroy the One Ring... 💍🗺️
What we’ve cooked up for you today…
📉 Is this the end?
😱 Ethereum may surprise everyone
🤔 Who’s selling?
💰 And more…
MARKET WATCH ⚖️
Prices as at 7:10am ET
Only the top 20 coins measured by market cap feature in this section
IS THIS THE END? 📉
BREAKING: Bitcoin Slumps Below $54K as Mt. Gox Moves $2.6B in BTC
The Mt. Gox repayments have started…
According to Arkham intelligence, Mt. Gox moved 47,288 BTC ($2.7 billion) from cold storage to a new wallet. (in preparation for distribution to creditors)
And…
As you probably know by now, the market did not take that news well.
In fact, the sudden price crash triggered the largest long liquidation event since the collapse of FTX.
The last 24 hours has seen over $670 million in leveraged longs getting wiped out.
Last month, Mt. Gox announced that they would begin repayments in July.
Since then, the market has been worried that creditors would immediately sell their coins upon receiving them.
At the time of the Mt. Gox hack, Bitcoin was trading at ~$600.
With prices now at around $55,000 who can blame these forced HODLers for taking profits…
If you’re in need of some hopium, we’ve got your back.
Alex Thorn, head of research at Galaxy Digital believes the Mt. Gox sell off news is being overstated:
“Even if i’m right that these coins are not going to be dumped en masse by creditors, the fear is palpable, particularly w/ the germans also dumping on us. we’ll get through this overhang & never have to talk about it again.”
But regardless, the price of Bitcoin dumped hard…
Falling ~5.53% in the last 24 hours and down 10.25% in the last 7 days.
Just remember - corrections are opportunities. 🎁 🫡
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ETHEREUM MAY SURPRISE EVERYONE 😱
Shifting gears a little, the Ethereum ETFs are just around the corner.
And Matt Hougan believes they may surpass everyones expectations.
Matt Hougan is the Chief Investment Officer at Bitwise, the 4th largest Bitcoin ETF issuer.
Every week, Matt releases a market commentary memo.
In his latest, he answered the question:
Could the Ethereum ETFs outperform the Bitcoin ETFs?
The media lumps Bitcoin and Ethereum together, but that couldn’t be further from the truth.
By design, they’re completely different things and serve completely different use cases.
Bitcoin is a new monetary asset which aims to compete with gold, the US dollar and other fiat currencies.
On the other hand, Ethereum is a technology platform:
“It is a fully programmable blockchain that serves as the backbone for new crypto-based applications, like tokenization, stablecoins, and decentralized finance.”
And as more people use these applications built on top of Ethereum, the value of ETH grows. (have to pay fees in ETH to use the network)
Due to the reasons in the chart above, Matt believes the Ethereum ETFs could surprise everyone - bringing in more flows than expected.
Investing in technology stocks is also WAY more common than investing in monetary assets like gold.
“It’s pretty easy for me to imagine investors selling a small amount of their tech exposure and adding ETH. I’d argue it’s easier than imagining investors carving out an entirely separate portfolio sleeve for a new monetary asset.”
But for this happen, the idea that Ethereum is a technology investment needs to reach the mainstream.
More people need to understand the differences between Bitcoin & Ethereum
Applications built on Ethereum need to gain mainstream attraction
And that’s already happening with the rise of stablecoins.
Over the last 4 years, stablecoin transfer volume has increased by 16x.
Stablecoin transfer volume
It’s not that far of a stretch to imagine the Ethereum ETFs outperforming the Bitcoin ETFs.
But remember, the Bitcoin ETFs were the most successful ETF launch ever.
So Ethereum would have to break this record…
WHO’S SELLING? 🤔
So we know the German government has been on a selling spree.
And Mt. Gox distributions have begun.
But who’s been selling out of the HODLers? 🤷♂️
Has it been the short-term or long-term holders?
Well according to CryptoSlate analyst James Van Straten, it’s the short-term holders…
Realized loss
The last 24 hours has seen realized losses soar to ~$814 million.
This significant sell-off is the fifth largest realized loss since the collapse of FTX. 😱
And as we mentioned earlier, it’s a direct response to the Mt. Gox news.
Realized loss by HODLer cohort
The table above breaks down this realized loss into HODLer cohorts.
As you can see the bulk of the sell-off has been attributed to holders within the 1 - 3 month bracket.
These short-term holders experienced realized losses of $587 million out of the $814 million total. (72.11%)
BUT, long-term holders didn’t seem phased at all by the news…
Contributing minimally to the total realized loss.
Just goes to show the resilience that these long-term holders have.
We know it sucks seeing Bitcoin prices at these levels.
But all we can do is HODL on…
The long-term setup is there.
CRACKING CRYPTO 🥜
German MP urges government to stop selling Bitcoin. A German MP has criticized the government's decision to liquidate part of its Bitcoin holdings and urged a reconsideration of the strategy.
Bitcoin crashes to $53K, but analysts warn the worst isn’t over. Bitcoin suddenly fell as low as $53,600 on July 5, and analysts are now warning of a continued slump as low as $50,000.
Crypto Bulls Rack up $580M Liquidations as Bitcoin Drops 8%, Ether, Solana, Dogecoin Plunge. Traders previously warned of a bearish market reaction to Mt. Gox’s bitcoin repayments.
Bitcoin Is Falling—How Low Will It Go? Bitcoin still hasn't hit the price bottom, analysts say. But they also expect plenty of upside left before the end of the year.
WHAT WE’RE READING 📚
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CAN YOU CRACK THIS NUT? ✍️
Select your answer below and you’ll be redirected to the results page. (answer explanation can be found after “Meme Corner”)
In what year did popular Bitcoin exchange Mt. Gox get hacked? |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: D) 2014 🥳
Mt. Gox was hack in 2014
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